Hong Kong's government is considering shortening the mandatory on-arrival quarantine requirement from 21 days to seven days for those fully vaccinated, although the benefit to the city's struggling airlines may be limited. "While the efforts of the Hong Kong government to lower the mandatory on-arrival quarantine period for fully vaccinated travelers from 21 days to seven days will be welcomed by many airlines and travellers, there would not be a drastic increase in demand for air travel even with the shortened period," says Eric Tamang, a Hong Kong-based valuations analyst. "Quarantine adds extra cost and time for travellers, hindering them from travelling to and from another country."
Government adviser Ivan Hung Fan-ngai has proposed that travellers fully vaccinated against Covid-19 could, in addition to having their quarantine reduced to seven days when they arrive in Hong Kong, be allowed to serve their quarantine at home rather than in a hotel, according to a 5 May article in local newspaper The Standard. Currently, travellers arriving in Hong Kong must serve quarantine in hotels at their own expense for between 14 and 21 days. In addition, non-Hong Kong residents who have visited places other than mainland China, Macau, Taiwan, Australia, New Zealand or Singapore within 14 days of arrival will be denied entry to the city, according to a 12 April notice on Hong Kong International airport's website. Even if the government decides to implement a reduced quarantine for vaccinated travellers, the number of fully vaccinated people in Hong Kong is low. Only 7.6% of Hong Kong's population is fully vaccinated against Covid-19, according to government data published by The South China Morning Post. Vaccine hesitancy, rather than lack of supply, is one of the main reasons for the low vaccination rate. "Given the relatively low uptake of vaccination in Hong Kong and unstable daily Covid-19 cases abroad, the general population would still be reluctant to travel due to uncertainty and quarantine measures abroad, which can affect airline load factors and hinder airline revenues," Ascend by Cirium's Tamang notes. Local airlines Cathay Pacific, HK Express and Hong Kong Airlines were not immediately available for comment. Cathay Pacific has posted a 96% year-on-year decline in group traffic for March. It carried a total of 18,539 passengers, a 94% decline. Dennis Lau, a senior valuations analyst at Ascend by Cirium in Hong Kong, adds that the reduced quarantine would mainly be attractive to travellers like Hong Kong students returning from study overseas, or those visiting family, who plan to have a longer stay than the typical tourist or businessperson. "However, business travel and leisure travel are unlikely to see any notable increase, even with the shorter quarantine," he says. ne glimmer of hope for on-arrival-quarantine-free travel to Hong Kong is now flickering. The long-delayed Air Travel Bubble (ATB) between the city and Singapore is set to launch on 26 May, but a Singapore government official has said it is assessing any potential changes given a recent outbreak of Covid-19 in Singapore. The ATB has a strict suspension mechanism whereby flights must be paused for two weeks if the weekly average number of unlinked Covid-19 cases in either city rises above a certain level.

British Airways is downsizing a recent enhanced equipment trust certificate (EETC) issuance by almost 40% as a result of production delays reducing the available aircraft to form its collateral. Fitch Ratings states in a 28 April note that the IAG-owned airline is reducing the size of its EETC 2020-1 issuance from $1.04 billion to $614 million. This will involve the downsizing of its Class A certificates from $763.5 million to $466.6 million and Class B certificates from $241.1 million to $147.4 due to production delays by aircraft manufacturers beyond the certificates' drawdown deadline of 31 March 2021. One Airbus A320neo and three Boeing 787-10s will no longer be financed by the certificates and undrawn certificates proceeds held at the depositary have been refunded back to the certificate holders. BA expects to find other sources of funding to finance delayed deliveries, Fitch states. BA issued its EETC 2020-1 in November 2020, secured by 14 aircraft, in order to repay a $750 million bridge loan and fund additional deliveries. The collateral consisted of four A320s delivered in 2009-10 and the rest would be new A320neo, A350-1000 and B787-10 deliveries in 2020. Fitch says the collateral pool's two A350-1000s – which it views as tier-two assets due to their limited user base and orderbook and the absence of engine commonality with other A350 families – will now contribute over 40% of the total from 25% initially. The older-generation of A320s will now contribute 9% compared with 5% initially; the A320neo and 787-10 now contribute 12% and 38%, respectively. The downsizing does not impact on Fitch's "BB" rating with a negative outlook for the B Class certificates and the "A-" rating for the Class A certificates. The liquidity facility associated with the financing and the strong ratings of the UK carrier factor into the agency's calculations for the Class B certificates.

Nigerian authorities have lifted a suspension order against local carrier Azman Air after it implemented a corrective plan to address safety matters, the airline states. The suspension affected Azman’s Boeing 737 fleet and was imposed in mid-March after several incidents involving the undercarriage of passenger flights, each of which involved aircraft damage, over the space of six weeks. Nigeria’s civil aviation authority had described, on 19 March, an “alarming trend” of tyre failures, combined with “improper” tyre maintenance procedures, as a “clear and strong indication of an accident chain formation in its final stages”. “No responsible civil aviation authority will fold its arms and wait for the next incident to occur, perhaps a fatal accident, before taking action,” it added, justifying its suspension of Azman’s 737 operations and the initiation of a comprehensive audit into airworthiness, training, finances and other areas. But Azman Air says it met with the authority on 1 May, after undergoing the safety audit and implementing the recommended corrective action plan. It cites a 1 May communication from the regulator which states that the authority has reviewed the plans and “found them satisfactory” and that it “hereby lifts the suspension… with regards to the operations of [737s]”. “We can assure the general public that it is the beginning of a new experience,” says the carrier. “We remain committed to raising the standard when it comes to the safety of crew, equipment and passengers.”